MP Materials said it expects to return to profitability in the fourth quarter and beyond.
- Q3 revenue fell 15% YoY to $53.55 million, marking a slight beat relative to the consensus.
- The materials segment revenue fell 50% YoY due to the stoppage of rare earth oxide (REO) sales to third parties in July.
- MP Materials’ stock has gained 225% this year, with the majority of the gains occurring after the company received the government’s investment.
Shares of rare-earth materials company MP Materials Corp. (MP) fell over 7% in Thursday’s extended session despite a quarterly beat. The company is transitioning from a supplier of rare-earth concentrates to a fully integrated producer of rare-earth magnets, moving from mining to processing, precursor materials production, and ultimately high-performance magnets.
The Las Vegas, Florida-based company operates in a strategically important industry, prompting the Department of Defense to agree in July to invest $550 million in the company, giving the government a 10% stake.
MP Materials Q3 Snapshot
James Litinsky, founder and CEO of MP Materials, said the company delivered another strong quarter. “This performance underscores the momentum we are building at a pivotal time for our Company and Country,” the executive said.
“With key portions of our agreements with the Department of War commencing in the current quarter, we now have enhanced cash flow visibility to accelerate scaled magnet production in the United States—beginning with first commercial output from Independence by year-end.” Independence is the company’s downstream center for the production of rare-earth metals and magnets.
On the earnings call, Litinsky said the third quarter was a “game changer,” marking a total acceleration as a “vertically integrated national champion with a transformed economic platform for long-term leadership,” according to the Koyfin transcript.
MP Materials’ revenue for the fiscal year 2025 third-quarter revenue fell 15% year over year (YoY) to $53.55 million, marking a slight beat relative to the Fiscal.ai-compiled consensus of $53 million. The quarterly adjusted loss per share narrowed to $0.10 from $0.12, while analysts, on average, had modeled a loss of $0.16 per share.
The Materials segment revenue fell 50% YoY to $31.6 million, due to the stoppage of rare earth oxide (REO) sales to third parties in July. The drop was offset to some extent by a $11.7 million increase in NdPr oxide sales, a rare-earth compound used in the manufacture of permanent magnets.
The company also said it expects to return to profitability in the fourth quarter and beyond. It will begin
What Retail Feels About Stock After Q3 Print
On Stocktwits, retail sentiment toward MP Materials stock shifted to ‘bullish’ as of late Thursday, from ‘bearish’ the day before. The message volume also increased to ‘high’ levels, rising by more than 100% over the past 24 hours.
A watcher said their favorite takeaway from the conference call is the management commentary regarding the company being profitable at least a quarter ahead of schedule. “How often does a mining company report that? Never,” they said. “Next ER should be fantastic and I truly believe that a price increase will occur in anticipation of great revenue reporting.”
Retail also expressed optimism about a trade and economic deal that Trump announced with Uzbekistan, under which Uzbekistan has agreed to invest in and purchase critical materials and other items from the U.S.
MP Materials’ stock has gained 225% this year, with most of the gains coming after the government invested in the company.
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